Racer Industries has fixed costs of $900,000. The selling price per unit is $250, and the variable cost per unit is $130. Required: a. How many units must Racer sell in order to break even? units b. How many units must Racer sell in order to earn a profit of $480,000? units c. A new e Accounting numeric field dustries sponsor a 10K marathon as a form of advertising. The cost to sponsor the event is $7,200. How many more units must be sold to cover this cost? units

Racer Industries has fixed costs of $900,000. The selling price per unit is $250, and the variable cost per unit is $130. Required: a. How many units must Racer sell in order to break even? units b. How many units must Racer sell in order to earn a profit of $480,000? units c. A new e Accounting numeric field dustries sponsor a 10K marathon as a form of advertising. The cost to sponsor the event is $7,200. How many more units must be sold to cover this cost? units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Gelbart Company manufactures gas grills. Fixed costs amount to $16,192,800 per year. Variable costs per gas grill are $240, and the average price per gas grill is $600. Required: 1. How many gas grills must Gelbart Company sell to break even? fill in the blank 1 gas grills 2. If Gelbart Company sells 48,825 gas grills in a year, what is the operating income? $fill in the blank 2 3. If Gelbart Company’s variable costs increase to $252 per grill while the price and fixed costs remain unchanged, what is the new break-even point? If required, round your answer to the nearest whole number. fill in the blank 3 gas grills
Diamond Boot Factory normally sells its specialty boots for $23 a pair. An offer to buy 105 boots for $16 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $8, and special stitching will add another $3 per pair to the cost. Determine the differential income or loss per pair of boots from selling to the organization.$ Should Diamond Boot Factory accept or reject the special offer?
I was needing help with the following accounting problem.
Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 30,000 parts is $100,000, which includes fixed costs of $40,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $2 per unit and avoid 20% of the fixed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $16,000. If Voltaic outsources, what will be the effect on operating income? A. decrease of $8,000 B. decrease of $24,000 C. increase of $16,000 D. increase of $24,000
please help me to solve this
It costs a coat manufacturer $8750 to make 125 coats and it costs $6500 to make 80 coats. Each coat is sold for $350. a. How much is the marginal cost? b. What is the slope of the Profit function, P(x)? c. How many coats must be sold in order to break even?
Diamond Boot Factory normally sells its specialty boots for $35 a pair. An offer to buy 125 boots for $31 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $12, and special stitching will add another $2 per pair to the cost. Determine the differential income or loss per pair of boots from selling to the organizatio
narubhai
Miller Books is considering publishing a book about meditation. The fixed costs to publish the book is estimated at $160,000. Variable material costs are estimated at $6 per book. Demand over the life of the textbook is estimated at 4,000 copies. Miller books anticipates that they can sell the books for $46 per unit. a) Write an expression for total revenue b) Write an expression for total cost c) Write an expression for total profit d) Find the break-even point e) Recommend a strategy if Miller will not be able to sell more than 3,500 copies.
Hawk Homes, Ic., makes one type of birdhouse that it sells for $30.00 each. Its variable cost is $13.50 per house, and its fixed costs total $14,239.50 per year. Hawk currently has the capacity to produce up to 2,800 birdhouses per year, so its relevant range is 0 to 2,800 houses. Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1,110 birdhouses this year. 2. Without any calculations, determine Hawk's total contribution margin if the company breaks even. 3. Calculate Hawk's contribution margin per unit and its contribution margin ratio. 4. Calculate Hawk's break-even point in number of units and in sales revenue. 5. Suppose Hawk wants to earn $21,000 this year. Determine how many birdhouses it must sell to generate this amount of profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a contribution margin income statement for Hawk assuming it sells 1,110 birdhouses…
Steven and Son Inc. sells its car wash package for $180 per unit, its total variable costs per unit is $80 per unit, whereas the total fixed costs are $150,000. The company is considering the increase this year targeted profit to $250,000. What is the company's margin of the safety? Select one: a. The margin of the safety is $450,000 b. The margin of the safety is $630,000 c. The margin of the safety is $270,000 d. The margin of the safety is $180,000
Snow Now sells snowboards. Snow Now knows that the most people will pay for the snowboards is $129.99. Snow Now is convinced that it needs a 45% markup based on cost. The most that Snow Now can pay to its supplier for the snowboards is: A. $88.65 B. $98.65 C. $96.65 D. None of these E. $87.65